Governance framework: beyond the boardroom

Governance framework: beyond the boardroom

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Companies need an overall strategic framework, to provide oversight for the five stages of the capital management life cycle, and ensure that projects support key organizational goals and adapt to changing market conditions. The framework is a basis for prioritizing investment decisions, planning, budgeting and evaluating projects.

According to the respondents to KPMG’s 2015 global survey:

95% have a formal capital management policy

84% have a Board or executive committee to oversee capital management

all have a standardized and documented capital planning framework

the framework typically includes clearly defined and applied capital categories

only 37% align capital investment metrics with business unit and executive performance incentives.